What the top performing companies are doing differently
PwC has conducted European working capital management studies since 2009, analysing trends in working capital management and how this impacts profitability. This study highlights how companies can benefit from better working capital management, both in terms of access to liquidity and cash and also profitability.
The main results of the study show that:
- Focussing on working capital can generate important benefits in terms of profitability.
- Having worked over the last 20 years with companies across the world to improve their working capital performance, we have seen a consistent and recurring number of ‘success’ factors which allow certain companies to continuously outperform their competitors.
- The most successful companies are constantly adapting themselves to a new regulatory environment and are innovating by making the most
out of technology to achieve significant reductions in working capital. A good example here are supply chain finance programmes, even though these are far from new, there is strong renewed interest from companies to evaluate possibilities in this area. Making the most of accounts payable processing technology allows companies to create a ‘win‑win’ situation, as the supplier gets paid within short timeframes and the company benefits from extended payment terms.
- With this in mind, we believe this publication will provide you with valuable insights as to where you position your own working capital performance.